Especially in the marketing process, users—or more precisely, potential customers—are evaluated under distinct groups, enabling more effective resource management and the establishment of message-based communication aligned with specific objectives or goals.
In the simplest terms, if we consider a web page, new users (new user) and returning users (return user) form our most fundamental group. This is because we can reasonably assume a relationship with returning users, as they represent a known behavior pattern. In the next step, we can attempt to understand the path a returning user follows. Direct traffic may hold greater value for us, as we can assume the visitor is one of our followers. As evident, each variation can give rise to a new group or subgroup. Now, let’s also add a target to the process. For a blog, page depth, comments, and average session duration could serve as evaluation criteria. For an e-commerce site, however, product sales are of primary importance.
Funnel Chart
Funnel charts (funnel chart), also known as accumulation charts, typically represent a sales process broken down into phases or stages, and are used to evaluate potential revenue levels1. The goal is to optimize the differences between the start and end of the process, thereby improving conversion ratios2. After the first interaction with a user, the journey toward the desired goal (customer journey) is characterized by drop-offs, errors, or abandonment, and is therefore represented as a funnel (huni), and visualized through a funnel chart (huni graph). This method helps identify potential issues in sales processes and increases sales volume. A funnel chart resembles a 100% stacked bar/column chart3.
Funnel charts can be interpreted aesthetically in many different ways. The criterion for interpreting a funnel chart is the breaks and changes in density between the starting point and the target. This enables the identification of problematic areas within a short period of time4.
Typically, breaks are represented in a classic manner from top to bottom. However, due to the advantage of the area, usage from left to right is frequently implemented in dashboard panels.
A funnel chart generally displays decreasing ratios, approaching a total of 100%, for each break (if the breaks do not have an external entry). The top portion of the funnel chart, referred to as the head or base, represents the starting point, which is the highest section5. The lower section, where the break ends, is known as the neck2.
The operations mentioned in this article are part of the Looker Studio User Interaction Report.
Funnel Design
I previously mentioned that funnel charts are composed of breaks, including both the upper and lower sections. At least four breaks are required for the total number of breaks to be valid6. Otherwise, it would not be possible to understand potential issues in the flow formed by the upper and lower sections. An increase in the number of breaks will allow for a more detailed examination of the process7.
On the other hand, a perfectly triangular funnel chart makes it difficult to understand the decreases in the breaks. Therefore, a design that clearly visualizes these decreases should be used during the visualization process8.
In some cases, it may not be possible to clearly visualize the breakdowns. In such cases, representing data through column or bar charts would be a more accurate decision9 10.
Usage of the Huni Chart and the Huni Model
Sales Funnel
Sales funnel (sales funnel) is a model developed since the 1900s to map the customer journey—from the moment a brand or product captures a potential customer’s attention to the point of purchase. It is also known as the revenue funnel or sales process11. Fundamentally, the sales funnel divides the buying process—the journey potential customers take until they become customers (i.e., purchase a product or service)—into behavioral stages. These stages may vary depending on marketing or sales strategies12 13.
The model developed by E. St. Elmo Lewis and also known as the AIDA model consists of four stages: Awareness, Interest, Desire, and Action. Over time, as marketers and academics have evaluated and refined the model, the scope of these stages has been expanded and the model has been enhanced with new stages. The relationship between brand and consumer is now expressed through different models, based on new technologies and changes in consumer purchase behavior.
A model that generally describes the consumer-based stages of the purchase process. It consists of seven stages: Awareness (Awareness), Interest (Interest), Evaluation (Evaluation), Decision (Decision), Purchase (Purchase), Reevaluation (Reevaluation), and Repurchase (Repurchase). This model is also referred to as the customer funnel, marketing funnel, and conversion funnel.
Conversion Funnel
A conceptual model that includes processes such as searching, performance advertising, and lead generation, and serves as a reference point for the purchase funnel. It is used to illustrate the path a consumer follows through an online advertisement or search. Each stage can be independently reconnected, conversion rates can be optimized, and stages can be reevaluated.
Based on the above theoretical concepts, let’s proceed with an example using data from the last seven days of an e-commerce website.
The funnel above simply illustrates the stages between the cart and the payment step. Drop-offs that occur during this process can be readdressed through separate communication strategies. For instance, at the cart stage, if a potential customer has items in their cart, those items can be re-targeted to the customer to guide them back to the sales stage. A drop-off at the payment stage can be addressed directly by understanding and resolving the potential problems customers encounter. Now, let’s take a look at how this funnel can be presented in a more detailed and different way.
In this usage, we can see the activities visitors performed up to the point of becoming customers, including page changes, as detailed by Google Analytics goals. This enables us to implement page-specific improvements and create segments.
Footnotes
- Funnel Chart, Wikipedia ↩
- Funnel Chart, AnyChart Documentation ↩ ↩2
- Funnel Visualizations That Make Sense, Demystified ↩
- A Complete Guide to Funnel Charts ↩
- Funnel Chart, DataViz Project ↩
- Create and use funnel charts ↩
- How to Use Funnel Charts to Summarize Data in Apps ↩
- Funnel Visualization RyteWiki ↩
- Do This, Not That: Funnel Charts, Infogram ↩
- [Shalin Hai-Jew. The Humble “Funnel Chart”. ↩
- Sales process engineering, Wikipedia ↩
- Sales Process: The Ultimate 7-Step Guide for Creating One, Vainu ↩
- The Ultimate Guide to Creating a Sales Process, Hubspot ↩